The Financial Post reports in its Saturday edition that gold and silver have strongly rallied from their January lows. The Post's Peter Koven writes that Britain's vote to exit the European Union, of course, has only boosted gold's appeal as a safe haven. Shares of the big producers such as Barrick and Kinross have more than tripled from their lows, but they still trade at multiples far weaker than they did a decade ago. The gold bugs always argue that gold is going higher and that the stocks are always a screaming buy. Now bullish fund managers are making a more reasonable argument today: quite simply, these stocks remain incredibly underbought. Jason Mayer at Sprott Asset Management LP said gold stocks made up 7.7 per cent of stocks in the S&P/TSX composite in the first quarter, but drove 40 per cent of the index's overall return. He figures generalist investors have 0 to 1 per cent of their holdings in gold, so they barely participated in the upswing. "We know the generalist is nowhere near market weight in gold. So they're underperforming the benchmark," Mr. Mayer told the Post. "When the generalist says, 'I need gold exposure and I don't care at what cost,' it drives (net asset values) higher."